How to Calculate Electricity Costs and Lower Your Electric Bill

Person calculating home electricity costs

The average US household electricity bill is $122/month. Most people pay it without knowing which appliances are responsible. Use our electricity bill calculator to find costs for all your appliances.

How Electricity Costs Are Calculated

Cost = Watts x Hours Used / 1,000 x Rate ($/kWh)

A 1,500W space heater running 6 hours/day at 13c/kWh costs $1.17/day — $35/month. That adds up fast.

The Big 5 — Where Most Bills Come From

ApplianceTypical PowerMonthly Cost (13c/kWh)
Central AC / Heat Pump3,000-6,000W$75-$200+
Electric Water Heater4,000-5,500W$40-$60
Electric Dryer4,000-6,000W$15-$45
Refrigerator100-400W (24/7)$10-$20
Electric Oven/Range2,000-5,000W$10-$30

Top 5 Electricity Reductions

1. Thermostat Management

Heating and cooling is 40-50% of the average bill. A programmable thermostat that adjusts while you’re away can save $100-200/year with zero sacrifice.

2. Water Heater Temperature

Default setting is 140F — unnecessary. Reducing to 120F saves 4-22% of water heating cost and is still safe against bacteria.

3. Switch to LED Lighting

LEDs use 75% less electricity than incandescent. 30 bulbs switched saves about $85/year in electricity alone.

4. Cold Water Washing

90% of washing machine energy goes to heating water. Cold water washing uses about 10% of the energy of hot with modern detergents.

5. Phantom Load Elimination

40+ devices in standby consume 5-10% of total electricity (~$100-200/year). Smart plugs eliminate this passively.

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How much does it cost to run a refrigerator per month?

Modern Energy Star units: 100-150W = $10-14/month. Older units (10+ years): 150-400W = $14-38/month. Upgrading a 20-year-old refrigerator pays back in 3-4 years.